THE bloodbath in the retail sector is expected to continue into next year with the number of new high-profile failures easily hitting double figures by March's rent day.

This year has been the worst for retail failures in terms of numbers since 2008

Experts say the retailers most vulnerable to collapse will be those with poor online offerings, excessive debt or an addiction to heavy discounting to shift stock.

This year has been the worst for retail failures in terms of numbers since 2008, with 52 companies, 3,907 stores and 47,790 staff affected. Last week, retailer Comet became the latest to shut up shop.

The collapses have been triggered by cash-strapped consumers tightening their belts, and the growing trend to shop online hitting high-street stores.

In 2008, when the credit crunch hit with full force, 54 firms failed, 5,793 stores closed and more than 74,000 employees lost their jobs.

Nick Hood, of corporate health monitoring specialists Company Watch, said: "The tally of 2012 failures is likely to grow further in the early part of next year, as lenders, suppliers and credit insurers make tough decisions about which retailers to support and which to abandon.

"Several high-profile retailers are under pressure and we could easily see a double-digit rash of further insolvencies by the middle of March as the first rent quarter day looms."

The tally of 2012 failures is likely to grow further in the early part of next year, as lenders, suppliers and credit insurers make tough decisions about which retailers to support and which to abandon

Nick Hood from Company Watch

His prognosis comes despite an expected last-minute spending splurge this weekend as shoppers rush to take advantage of deep discounting. The shopping spree is set to include the UK's busiest-ever shopping hour on Sunday according to Sainsbury's.

Hood claims that the crisis in the retail sector this year is more serious than four years ago when the headline numbers were distorted by the demise of Woolworths.

He said: "This year's casualty list may not be as long as the dark days of 2008, but in many ways it is much more serious and covers a far broader range of retail offerings. Unlike 2008, when there were willing buyers eager to rescue businesses, the Comet debacle has shown that for some of the current failures there is no way forward as the relentless march of online spending makes more store portfolios either overweight or irrelevant except as expensive showrooms."

Earlier this month HMV warned that it is likely to breach key loan agreements in January and April and needs a last-minute sales rush to give it breathing space. "This is the key week, it is make or break for HMV," said one analyst.